Which shift should occur if the Fed raises the discount rate?
A. The aggregate demand curve should shift rightward.
B. The investment demand curve should shift rightward.
C. The aggregate demand curve should shift leftward.
D. The aggregate supply curve should shift rightward.
Answer: C
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A good is classified as inferior if
a. consumers buy less when the price rises. b. consumers buy less when income rises. c. consumers buy less when the price falls. d. consumers buy more when income rises.
In the market shown in Exhibit 3-15, the equilibrium price and quantity of good X are:
A. $0.50, 250.
B. $2.00, 300.
C. $2.00, 100.
D. $1.00, 200.
Each of the following is a determinant of demand except
a. tastes. b. production technology. c. expectations. d. the prices of related goods.
The spending multiplier measures the change in equilibrium income that results from a change in:
a. consumption. b. interest rates. c. savings. d. net exports. e. autonomous expenditures.